Westgold Resources Limited Annual Report 2021

CHAIRMAN’S LETTER FIRMLY FOCUSSED ON GROWTH Dear Shareholders, It is my pleasure to present you the Westgold Resources Limited (Westgold or the Group) Annual Report for the financial year ended 30 June 2021 (FY2021). This financial year has been pivotal yet bittersweet for Westgold. With the overprint of COVID-19 and the many disruptions and consequences it has brought, our operations continued to advance. Our gold output was under our expectations as minor delays were experienced, however the fundamentals of our owner-operator model shone through and, despite the high fixed component of our costs, our team prudently managed our fiscal drivers solidly such that our key unit costs delivered better than expected guidance outcomes. Our flag is firmly planted in the Central Murchison region and a key milestone for the year was achieved in October 2020 when we produced our first million ounces of production, just short of four-years since commencing trading on the ASX as a separate Company. During the year we also completed the final divestment of all non-core assets external to this region. Our operating results reflect a solid improvement over the previous year with revenue increasing by 16% year- on-year to $571 million, total cost of sales decreasing by 2% to $455 million, net profit after tax growing by 122% to $76.7 million and at financial year end, a closing cash and cash equivalents balance of $150.6 million leaving the Group in a solid trading position. We continued to build balance sheet strength over the year with net assets increasing by more than 16% to $607 million. This solid and upward trajectory was rocked mid-year when the unthinkable occurred. The very thing our teams plan, manage and so vehemently try to protect against occurred with a tragic accident claiming the life of an employee at our Big Bell mine. This was the first fatality I have directly endured in nearly 40 years in the industry, it devastated our management and deeply affected our close-knit teams as they suffered the loss of a colleague and immense sorrow for her family and friends. As the Chairman I was extremely proud of the way that our management team and site staff reacted to this tragedy. Our people are resilient, and I witnessed first- hand the range of human responses within our workforce as our people began dusting themselves off from this incident during early 2021 and helping each other move forward. In regard to business performance, the first half of FY2021 saw the Westgold share price improve as our gold operations began to gain momentum with key mines moving towards steady state operation. The second half of FY2021 saw some production momentum lost and, even with strong cost management, the share price and corresponding market capitalisation closed at disappointing levels at financial year end. As a founder of Westgold, inaugural Managing Director and after having served as an interim Executive Chairman for the second half of the year, my transition to the Non-executive Chairman’s role is complete. The announcement of the 2 cents per share maiden dividend is very pleasing and marks another milestone for the company. Further, the Directors are establishing a dividend reinvestment plan to provide for the opportunity for dividends to be reinvested. Our operational succession plan is in place, and I am confident that the foundations that have been built at Westgold are strong and that our Executive management can deliver. 2 Westgold Resources Limited Annual Report 2021